FAC Explorer

Audit 308988

FY End
2023-12-31
Total Expended
$2.22M
Findings
6
Programs
2
Organization: Giving Youth A Chance Initiative (TN)
Year: 2023 Accepted: 2024-06-17
Auditor: Watkins Uiberall PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
400934 2023-002 Significant Deficiency Yes A
400935 2023-003 Significant Deficiency Yes A
400936 2023-004 Significant Deficiency - E
977376 2023-002 Significant Deficiency Yes A
977377 2023-003 Significant Deficiency Yes A
977378 2023-004 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $1.93M Yes 3
10.559 Summer Food Service Program for Children $295,050 - 0

Contacts

Name Title Type
CBU8QW2476E4 Rosman Randle Auditee
9015737238 Clark Province Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: 1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 2) Pass-through entity identifying numbers are presented where available. 3) GYAC has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance. 4) There were no federal awards passed through to subrecipients. 5) The grant revenue amounts received and expended (eligible for reimbursement) are subject to audit adjustment. If any expenses are disallowed by the grantor as a result of such audit, any claim for reimbursement to the grantor would become a liability to the GYAC. In the opinion of management, all grant expenses (eligible for reimbursement) are in compliance with the terms of the grant agreement and applicable federal and state laws and regulations. De Minimis Rate Used: N Rate Explanation: GYAC has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Giving Youth a Chance Initiative, Inc. (GYAC) under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations for GYAC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of GYAC.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 2) Pass-through entity identifying numbers are presented where available. 3) GYAC has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance. 4) There were no federal awards passed through to subrecipients. 5) The grant revenue amounts received and expended (eligible for reimbursement) are subject to audit adjustment. If any expenses are disallowed by the grantor as a result of such audit, any claim for reimbursement to the grantor would become a liability to the GYAC. In the opinion of management, all grant expenses (eligible for reimbursement) are in compliance with the terms of the grant agreement and applicable federal and state laws and regulations. De Minimis Rate Used: N Rate Explanation: GYAC has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance. 1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 2) Pass-through entity identifying numbers are presented where available. 3) GYAC has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance. 4) There were no federal awards passed through to subrecipients. 5) The grant revenue amounts received and expended (eligible for reimbursement) are subject to audit adjustment. If any expenses are disallowed by the grantor as a result of such audit, any claim for reimbursement to the grantor would become a liability to the GYAC. In the opinion of management, all grant expenses (eligible for reimbursement) are in compliance with the terms of the grant agreement and applicable federal and state laws and regulations.

Finding Details

Finding 2023-002
2023-002 – Reimbursement Claims Not Supported by Meal Count Sheets Significant Deficiency in Internal Controls over Compliance and on Compliance Award 10.558; Compliance Requirement A – Activities Allowed and Unallowed Condition: For the monthly meal reimbursement claims, we noted several instances in which the amount requested for reimbursement exceeded the underlying daily meal count forms provided by site supervisors or participant rosters. Criteria: Title 7 of the Code of Federal Regulations, Section 225.9 (d)(5) states, “In submitting a claim for reimbursement, the sponsor shall certify that the claim is correct and that records are available to support this claim.” Cause: The primary internal control over compliance for submitting claims for reimbursement and reviewing the claim reimbursement against monthly internal spreadsheets failed. Effect: Incorrect claims for reimbursement were submitted which resulted in noncompliance with the Activities Allowed and Unallowed compliance requirement of the Uniform Guidance. Total known and questioned costs were less than the reportable threshold of $25,000. Context: A sample of sixty (60) daily meal counts were selected for testing. The daily meal count for the specific day and location per the monthly internal summary did not agree to the meal count reported on the monthly claims reimbursement for (7) of the selections. Recommendation: Currently, management has a process to reconcile daily meal count sheets to the reimbursement claims. Due to cash management needs, claims are originally reported within a few days of month end. The claims are later amended as a part of a second review to be completed within 60 days of month end for the timely filing of claim reimbursement amendments. We recommend that current internal controls over compliance be reviewed and followed. Management’s Response: See accompanying management’s corrective action plan.
Finding 2023-003
Significant Deficiency in Internal Controls over Compliance and on Compliance Award 10.558; Compliance Requirement A – Activities Allowed and Unallowed Condition: Amendments made to original claims for reimbursement were not submitted timely. Criteria: The Child and Adult Care Food assistance listing from sam.gov states “Institutions file monthly reports on Program operations to claim reimbursement for meals served. They must submit final claims no later than 60 days after the claiming month.” Cause: Timely amendments were not filed. Effect: Amounts owed to and from the federal program provider were not determined timely. Context: All ten (10) months of the program original and amended claim reimbursements were reviewed. Of the eight (8) months which had amended claim reimbursements, five (5) months were not filed timely, within 60 days after the claiming month. Recommendation: Currently, management has a process to review monthly claim reimbursements for a second time after the original claim reimbursement is filed. There currently is not a deadline to complete this review, other than within 60 days. We suggest that management further define this review process to include timely review and preparation of any needed amended claim reimbursements. Management’s Response: See accompanying management’s corrective action plan.
Finding 2023-004
2023-004 – Reimbursement Claims Reported Meals Delivered To Unidentified Participants Significant Deficiency in Internal Controls over Compliance and on Compliance Award 10.558; Compliance Requirement E – Eligibility Condition: Reimbursement claims were made for more meals than there were participants on the specified date. Criteria: Title 7 of the Code of Federal Regulations, Section 225.9 (d)(5) states, “In submitting a claim for reimbursement, the sponsor shall certify that the claim is correct and that records are available to support this claim.” Cause: A roster of participants is maintained by each location for each day that meals are provided. Participants are not eligible for meals unless they are on the roster. The meals reported on the daily meal count forms exceeded the daily roster of participants. Effect: Meals were requested for reimbursement in excess of the number of participants included on the supporting roster of participants for the specific location and date. Total known and questioned costs were less than the reportable threshold of $25,000. Context: A sample of sixty (60) daily meal counts were selected for testing. For three (3) selections, there was no supporting roster of participants. For five (5) selections, the number of meals reported as delivered exceeded the number of participants eligible on the roster of participants. Recommendation: Currently, management has a process to require a daily roster of participants at each location in order to monitor the meals delivered and the eligibility of the participant. We recommend that current internal controls over compliance be reviewed and followed. Management’s Response: See accompanying management’s corrective action plan.
Finding 2023-002
2023-002 – Reimbursement Claims Not Supported by Meal Count Sheets Significant Deficiency in Internal Controls over Compliance and on Compliance Award 10.558; Compliance Requirement A – Activities Allowed and Unallowed Condition: For the monthly meal reimbursement claims, we noted several instances in which the amount requested for reimbursement exceeded the underlying daily meal count forms provided by site supervisors or participant rosters. Criteria: Title 7 of the Code of Federal Regulations, Section 225.9 (d)(5) states, “In submitting a claim for reimbursement, the sponsor shall certify that the claim is correct and that records are available to support this claim.” Cause: The primary internal control over compliance for submitting claims for reimbursement and reviewing the claim reimbursement against monthly internal spreadsheets failed. Effect: Incorrect claims for reimbursement were submitted which resulted in noncompliance with the Activities Allowed and Unallowed compliance requirement of the Uniform Guidance. Total known and questioned costs were less than the reportable threshold of $25,000. Context: A sample of sixty (60) daily meal counts were selected for testing. The daily meal count for the specific day and location per the monthly internal summary did not agree to the meal count reported on the monthly claims reimbursement for (7) of the selections. Recommendation: Currently, management has a process to reconcile daily meal count sheets to the reimbursement claims. Due to cash management needs, claims are originally reported within a few days of month end. The claims are later amended as a part of a second review to be completed within 60 days of month end for the timely filing of claim reimbursement amendments. We recommend that current internal controls over compliance be reviewed and followed. Management’s Response: See accompanying management’s corrective action plan.
Finding 2023-003
Significant Deficiency in Internal Controls over Compliance and on Compliance Award 10.558; Compliance Requirement A – Activities Allowed and Unallowed Condition: Amendments made to original claims for reimbursement were not submitted timely. Criteria: The Child and Adult Care Food assistance listing from sam.gov states “Institutions file monthly reports on Program operations to claim reimbursement for meals served. They must submit final claims no later than 60 days after the claiming month.” Cause: Timely amendments were not filed. Effect: Amounts owed to and from the federal program provider were not determined timely. Context: All ten (10) months of the program original and amended claim reimbursements were reviewed. Of the eight (8) months which had amended claim reimbursements, five (5) months were not filed timely, within 60 days after the claiming month. Recommendation: Currently, management has a process to review monthly claim reimbursements for a second time after the original claim reimbursement is filed. There currently is not a deadline to complete this review, other than within 60 days. We suggest that management further define this review process to include timely review and preparation of any needed amended claim reimbursements. Management’s Response: See accompanying management’s corrective action plan.
Finding 2023-004
2023-004 – Reimbursement Claims Reported Meals Delivered To Unidentified Participants Significant Deficiency in Internal Controls over Compliance and on Compliance Award 10.558; Compliance Requirement E – Eligibility Condition: Reimbursement claims were made for more meals than there were participants on the specified date. Criteria: Title 7 of the Code of Federal Regulations, Section 225.9 (d)(5) states, “In submitting a claim for reimbursement, the sponsor shall certify that the claim is correct and that records are available to support this claim.” Cause: A roster of participants is maintained by each location for each day that meals are provided. Participants are not eligible for meals unless they are on the roster. The meals reported on the daily meal count forms exceeded the daily roster of participants. Effect: Meals were requested for reimbursement in excess of the number of participants included on the supporting roster of participants for the specific location and date. Total known and questioned costs were less than the reportable threshold of $25,000. Context: A sample of sixty (60) daily meal counts were selected for testing. For three (3) selections, there was no supporting roster of participants. For five (5) selections, the number of meals reported as delivered exceeded the number of participants eligible on the roster of participants. Recommendation: Currently, management has a process to require a daily roster of participants at each location in order to monitor the meals delivered and the eligibility of the participant. We recommend that current internal controls over compliance be reviewed and followed. Management’s Response: See accompanying management’s corrective action plan.